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Franklin Electric Co Inc. — FELE Q3 25 ER Deck (company IR deck)
Franklin Electric Co Inc. (FELE) · 19 slides · Filed Oct 28, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All FELE deck slides
Slide 1 — Q3 2025 Earnings Presentation
Q3 2025 Earnings Presentation October 28, 2025
Slide 2 — Key Messages
Key Messages • Strong Q3 results in all three segments with both price and volume • Sales growth across end markets • Healthy Q3 order trends and backlog. A positive 2025 outlook • Disciplined strategy execution led to solid growth in a softer markets • Investing for growth while maintaining strong cost discipline • Well-positioned in the face of tariffs and global uncertainty 2
Slide 3 — Our People, Promise, and Commitment
Our People, Promise, and Commitment For our products: Innovating with quality products in the markets we serve To our customers: Leading with service and being an indispensable partner To our employees: Being a great place to work and attracting the best talent 3 2025 America’s Greenest Companies Newsweek 2025 Most Trustworthy Companies in America Newsweek 2024 America’s Climate Leaders USA Today 2024 America’s Most Responsible Companies Newsweek
Slide 4 — Q3 2025 Overview ¹
Q3 2025 Overview ¹ • Financial Performance: −Sales of $581.7M, up 9% YoY −Gross Margin of 35.9%, up slightly −Operating income of $85.1M, up 16% YoY, with operating margin of 14.6% −GAAP EPS of $0.37, Adjusted EPS of $1.30, up 11% YoY • Solid performance despite macroeconomic challenges • Higher sales in Water Systems, from the benefit of acquisitions, favorable pricing, and higher volumes • Higher Sales in Energy Systems due to higher volumes • Higher sales in the Distribution segment due to higher volumes 4 SALES OPERATING INCOME EPS $531M $582M Q3 2024 Q3 2025 +9% YoY $1.17 $1.30 Q3 2024 Q3 2025 $74M $85M Q3 2024 Q3 2025 +16% YoY +11% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted EPS, net debt/cash, free cash flow, and net debt to EBITDA. A reconciliation to comparable U.S. GAAP measures can be found herein.
Slide 5 — Q3 2025 Adjusted EPS ¹
$1.30 $1.17 Adjusted Q3 EPS Q3 2024 EPS Q3 2025 Adjusted EPS ¹ $0.37 $0.93 Q3 2025 Reported EPS Pension Settlement Loss 5 +11% 8% YoY 11% YoY 1 Non-GAAP financial metrics referenced in this slide include Adjusted EPS, net debt/cash, free cash flow, and net debt to EBITDA. A reconciliation to comparable U.S. GAAP measures can be found herein.
Slide 6 — Q3 2025 Performance
Q3 2025 Performance 6 $74M $19M ($8M) $0M $85M Q3 2024 Gross Profit SG&A Restructuring Q3 2025 SALES OPERATING INCOME Sales of $581.7M increased 9% YoY • Favorable pricing in all three Segments • Higher volumes in all three Segments • Acquisitions added 3% of growth Operating Income of $85.1M increased 16% YoY • Gross profit up on higher sales • Higher SG&A expenses primarily due to acquisition- related costs $531M $33M $16M $1M $582M Q3 2024 Volume/Price Acquisitions FX, net Q3 2025 13.8% 14.6% 3% 6% (0%) (6%) 10% (0%) 9% YoY 16% YoY
Slide 7 — Q2 2025 Segment Details
Q2 2025 Segment Details WATER SYSTEMS ENERGY SYSTEMS DISTRIBUTION Comments Op. Margin Op. Income Sales • Record revenue with Water Treatment up MSD, Dewatering sales up >20% • Gross margin down mainly due to one-time purchase accounting from recent acquisitions and sales mix • SG&A up due to acquisition-related expenses & intangible amortization 18.1% (down 160 bps) $61.8M (down 1%) $340.8M (up 8%) • Sales growth in Q2 due to favorable pricing and volumes • Operating margin increased due to favorable geographic mix of sales and cost management 37.5% (up 190 bps) $29.1M (up 12%) $77.5M (up 6%) • Record revenue with growth of 5% • Cost structure actions implemented in 2024 driving improvement in operating performance 8.1% (up 300 bps) $16.1M (up 64%) $200.0M (up 5%) 78
Slide 8 — Balance Sheet and Cash Flow¹
8 Balance Sheet and Cash Flow¹ 1 Non-GAAP financial metrics referenced in this slide include net debt/cash, free cash flow, and net debt to EBITDA. A reconciliation to comparable U.S. GAAP measures can be found herein. $103M Cash Balance $101M Net Debt 0.4x Net Debt to EBITDA 0.0M No Shares repurchased in Q3 $123M $107M Q3 2024 Q3 2025 $151M $135M Q3 2024 Q3 2025 Cash Flow From Operations Free Cash Flow
Slide 9 — 2025 Outlook
2025 Outlook 9 • Maintaining the midpoint of our EPS guidance, narrowing our range • Solid underlying demand in core markets , healthy demand trend, solid backlog • Maintaining strong margins • Tariff management and mitigation protecting margins • Maintaining strong balance sheet and deploying capital with best ROIC mindset • Confident in our long-term strategy • Not in EPS outlook: termination of defined benefit pension plan HIGHLIGHTS SALES $2.09 to $2.15 Billion (up LSD to MSD) EPS $4.00 to $4.20 (up MSD to HSD/LDD) LSD = low-single digits, MSD = mid-single digits, HSD = high-single digits, LDD = low-double digits
Slide 10 — OUR VALUE CREATION FRAMEWORK (2027)
OUR VALUE CREATION FRAMEWORK (2027) OUR BUSINESS SEGMENTS TALENT CENTRIC INVESTMENTS & CAPITAL RESILIENT MARGINS GROWTH ACCELERATION • Build on our “Great Places to Work” recognition by focusing on collaboration, service, innovation, and respect • Live Safety as a bedrock • Leading attractor and developer of talent • Strategic M&A driven by secular trends • Capital deployments to deliver automation, capacity, and optimal footprint • Share repurchase and dividend commitment • Expand Franklin Operating System (FOS) and our productivity and efficiency • Use data-driven solutions to deliver leading products pricing, and supply chain – end-to-end • Optimize our product development and portfolio • Serve global water needs where most critical • Use our leading channel and customer partnerships to drive share and growth • Focus on faster-growing commercial, industrial, and energy verticals with new solutions • Be the easiest to do business with via digital customer innovations OUR VALUE CREATION FRAMEWORK Water Systems Distribution Energy Systems $2.021B REVENUE $243.6M OPERATING INCOME 13% 55% 32% 29% 63% 8% 2024 63% 10
Slide 11 — Water Pressure Boosting
Water Pressure Boosting New Released Line Refining Channel Approach Inline SpecPAK Zero Footprint Minimal Noise VR SpecPAK Wide Range Compact Footprint VersaBoost Pro High Performance Minimal Noise One Franklin Solution Boosting | Water Treatment | Condensate Wastewater | Cooling Tower VFDs Prioritizing End Users 1) Understand Needs & Pain Points 2) Generate Pull-through Demand Pulling Sales through Specifiers, Contractors, Distribution Partners End Users Want: Single Source for Water Mgmt. End Users i.e. Hospitality, Senior Living, Multi-Family Market Pain Points Sprawling municipal infrastructure is degrading water pressure in new & existing buildings Mechanical room space is at a premium Property owners need to minimize equipment noise Multi-Family, Hospitality, & Senior Living need easy-to-use, economical pressure boosting Standard Easy-to-Use Interface 11
Slide 12 — Izmir Factory Expansion
Izmir Factory Expansion Investment: • $10M Investment to support Water & Energy businesses regional growth • New factory will support Water, refurbished legacy factory to support Energy Capacity: • ~130k sqft new manufacturing space • Serve our growing business in East Europe and the Middle East Go-live dates: • Q1 ‘26 for new Water plant • Q1 ‘27 for new Energy plant
Slide 13 — Closing Thoughts
Closing Thoughts 13 • Strong Q3, all businesses performing well both volume and Price • We have opportunities to further our transformation • Solid backlog and book to bill • Maintaining our EPS guidance, tightening range, we expect a strong year • Mitigation strategies in place to offset tariff impacts • Continued confidence in our long-term strategy • Our focus is growth, innovation, and building a great team
Slide 14 — Non-GAAP Reconciliations
14 Non-GAAP Reconciliations
Slide 15 — Non-GAAP Reconciliations
Non-GAAP Reconciliations To supplement Franklin Electric’s consolidated financial statements presented on a U.S. GAAP basis, the company discloses certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. Non-GAAP financial measures may enhance an understanding of the company’s operations and may facilitate an analysis of those operations, particularly in evaluating performance from one period to another. Management believes that non-GAAP financial measures, when used in conjunction with the results presented in accordance with U.S. GAAP and the company’s reconciliations to corresponding U.S. GAAP financial measures (which are included in the tables accompanying this presentation), may enhance an investor’s overall understanding of the company’s past financial performance and prospects for the future. Accordingly, management uses these non-GAAP measures internally in financial planning and to monitor business performance. This information should be considered in addition to, and not as substitutes for, information prepared in accordance with U.S. GAAP. Franklin Electric strongly encourages investors to review its consolidated financial statements and publicly- filed reports in their entirety and cautions investors that the non-GAAP measures used by the company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Non-GAAP financial measures used in this presentation include net debt/cash, net debt to EBITDA and free cash flow and conversion. 15
Slide 16 — Reconciliation of Adjusted EPS Non-GAAP Financial Measure
Reconciliation of Adjusted EPS Non-GAAP Financial Measure 16 2025 2024 Change Diluted Earnings per Share "EPS" (as reported - US GAAP) 0.37 $ 1.17 $ -68% Pension Settlement Loss 0.93 $ - $ Adjusted Diluted EPS (non-GAAP) 1.30 $ 1.17 $ 11% For the Third Quarter
Slide 17 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Total Debt to Net Debt (Cash) and Net Debt to EBITDA $ in Millions 17 As of September 30, 2025 Total debt 204 $ Less: cash and cash equivalents (103) $ Net (cash) debt 101 $ Nine months ended September 30, 2025 Year ended December 31, 2024 Nine months ended September 30, 2024 Twelve months ended September 30, 2025 Net income 109 $ 182 $ 147 $ 143 $ Depreciation and amortization 46 $ 56 $ 42 $ 60 $ Income tax expense 37 $ 50 $ 44 $ 43 $ Interest expense 8 $ 6 $ 5 $ 9 $ EBITDA 200 $ 294 $ 238 $ 255 $ Net debt to EBITDA as of Sept 30, 2025 0.4
Slide 18 — Reconciliation of Non-GAAP Financial Measure
Reconciliation of Non-GAAP Financial Measure Operating Cash Flow to Free Cash Flow $ in Millions 18 Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD Cash flows from operating activities (19.5) $ 51.5 $ 102.7 $ 134.7 $ (1.4) $ 36.4 $ 116.1 $ 151.1 $ Cash flows from investing activities (116.1) $ (11.2) $ (9.8) $ (137.1) $ (10.2) $ (10.0) $ (9.1) $ (29.3) $ Cash flows from financing activities (2.6) $ (19.5) $ (90.1) $ (112.2) $ (6.3) $ (32.4) $ (61.3) $ (100.0) $ Cash flows from operating activities (19.5) $ 51.5 $ 102.7 $ 134.7 $ (1.4) $ 36.4 $ 116.1 $ 151.1 $ Capital expenditures (6.8) $ (11.6) $ (11.4) $ (29.8) $ (9.2) $ (10.2) $ (9.5) $ (28.9) $ Proceeds from sale of property, plant and equipment 0.4 $ 0.3 $ 1.9 $ 2.6 $ 0.1 $ 0.3 $ 0.3 $ 0.7 $ Free cash flow (25.9) $ 40.2 $ 93.2 $ 107.5 $ (10.5) $ 26.5 $ 106.9 $ 122.9 $ 2025 2024
Slide 19 — Thank You!
Thank You! 260-827-5520 [email protected] Jennifer Wolfenbarger CFO 19